Description

Howmet Aerospace’s $800 Million Buyback Wave — Can Cash Flow Keep Funding Returns?

Howmet Aerospace reported a strong second quarter in 2026, marked by a 24% year-over-year increase in headline revenues and a 21% organic growth excluding acquisitions. This growth was supported by robust demand across several end markets, including commercial aerospace, defense aerospace, industrial gas turbines (IGT), and commercial transportation. Notably, commercial aerospace revenue increased 28% driven by both new builds and spare parts demand, while defense aerospace grew 11% year-over-year. The IGT segment saw a significant revenue surge of 38%, reflecting increased demand for electricity generation, particularly from data centers. The company also expanded its market presence in fastening systems through the CAM and Brunner acquisitions, with a 37% revenue increase including acquisition impacts. Financially, Howmet Aerospace showed improved profitability with EBITDA rising 39% year-over-year to $1.37 billion and an EBITDA margin increase of 340 basis points to 32.1%. Operating margin reached 28.8%, and earnings per share jumped 46% to $1.33.